Tower Health Services

Managed Care Company Sanctioned: Citing its "repeated failure" to comply with state licensing requirements, regulators have suspended a Long Beach-based managed care company that provides health services for Medi-Cal patients from all marketing and enrollment activities for 90 days. Tower Health Services will be barred from enrolling new Medi-Cal recipients or advertising its programs in Los Angeles and other Southern California counties.

The state Department of Managed Health Care filed a Chapter 11 bankruptcy petition on behalf of Tower Health. The department assumed control of the Long Beach-based HMO last month and is in the process of assigning its 100,000 enrollees to new health plans. Tower's largest unsecured creditor, according to the filing, is Salt Lake City-based RX America, a prescription-drug insurance broker that is owed $2.8 million.

State health officials have accused a Southern California HMO that serves indigent Medi-Cal members of marketing fraud, mishandling of consumer complaints and making it hard for members to quit the health plan. The state warned Tower Health Services that it may ban the HMO from enrolling new members for 90 days unless the firm moves quickly to fix numerous problems cited in a June 10 audit report.

Maxicare and Tower Health, two HMOs seized by state regulators, probably will be dissolved by the end of the year and their members picked up by other HMOs. Los Angeles-based Maxicare, the larger of the two HMOs, is wrapping up the sale of its Medi-Cal business to two HMOs, said Ivan L. Kallick, an attorney who represents the Department of Managed Health Care.

Dealing a temporary setback to state health regulators, a federal judge's ruling will allow an HMO accused by the state of numerous licensing violations to resume enrolling indigent Medi-Cal beneficiaries. The ruling by U.S.

The state Department of Managed Health Care filed a Chapter 11 bankruptcy petition on behalf of Tower Health. The department assumed control of the Long Beach-based HMO last month and is in the process of assigning its 100,000 enrollees to new health plans. Tower's largest unsecured creditor, according to the filing, is Salt Lake City-based RX America, a prescription-drug insurance broker that is owed $2.8 million.

State regulators Friday took control of financially troubled Tower Health, a Long Beach-based HMO with 111,000 enrollees in Los Angeles, Orange, San Bernardino and Riverside counties. Tower is the third health maintenance organization seized this year. But Daniel Zingale, director of the Department of Managed Health Care, said the takeovers don't signal broader weakness in the industry. "There are management issues in all three cases," Zingale said. "I still can't predict that this is a trend."

Maxicare and Tower Health, two HMOs seized by state regulators, probably will be dissolved by the end of the year and their members picked up by other HMOs. Los Angeles-based Maxicare, the larger of the two HMOs, is wrapping up the sale of its Medi-Cal business to two HMOs, said Ivan L. Kallick, an attorney who represents the Department of Managed Health Care.

The pregnant woman arrived at Anaheim Memorial Hospital's emergency room in the throes of a miscarriage, doubled over in pain and bleeding profusely. After a quick exam, the ER staff put in an urgent call to her HMO, Tower Health Services, with the question: How do you want us to treat her? It was 2 1/2 hours, the doctors say, before the health plan called back.

In a withering audit report, the state Department of Health Services has accused California's third-largest dental plan of practices that have effectively cheated thousands of indigent Medi-Cal enrollees out of proper care. The audit--prompted by a whistle-blowing former employee--cited DentiCare for denying some Medi-Cal recipients access to dental care, needlessly delaying care to others and improperly diverting fees from dentists into the company's coffers.

State regulators Friday took control of financially troubled Tower Health, a Long Beach-based HMO with 111,000 enrollees in Los Angeles, Orange, San Bernardino and Riverside counties. Tower is the third health maintenance organization seized this year. But Daniel Zingale, director of the Department of Managed Health Care, said the takeovers don't signal broader weakness in the industry. "There are management issues in all three cases," Zingale said. "I still can't predict that this is a trend."

Dealing a temporary setback to state health regulators, a federal judge's ruling will allow an HMO accused by the state of numerous licensing violations to resume enrolling indigent Medi-Cal beneficiaries. The ruling by U.S.

Managed Care Company Sanctioned: Citing its "repeated failure" to comply with state licensing requirements, regulators have suspended a Long Beach-based managed care company that provides health services for Medi-Cal patients from all marketing and enrollment activities for 90 days. Tower Health Services will be barred from enrolling new Medi-Cal recipients or advertising its programs in Los Angeles and other Southern California counties.

State health officials have accused a Southern California HMO that serves indigent Medi-Cal members of marketing fraud, mishandling of consumer complaints and making it hard for members to quit the health plan. The state warned Tower Health Services that it may ban the HMO from enrolling new members for 90 days unless the firm moves quickly to fix numerous problems cited in a June 10 audit report.